Regulated Crypto Fundraising: What You Need to Know

When working with regulated crypto fundraising, the practice of raising capital through crypto assets that satisfy legal standards. Also known as compliant token sales, it bridges traditional finance rules with blockchain innovation. This approach protects investors, builds credibility, and keeps projects out of legal trouble. Below we break down the core pieces you’ll encounter when navigating this space.

Key Pillars of Compliance

One of the first entities you’ll meet is the Financial Conduct Authority (FCA), the UK regulator that oversees crypto activities, mandates registration, and enforces AML/KYC rules. The FCA’s permission requirement means any platform offering token sales in Britain must prove it can prevent money‑laundering and safeguard investor funds.

Across the continent, the EU Markets in Crypto‑Assets Regulation (MiCA), a unified framework that classifies crypto assets, sets disclosure duties, and defines stablecoin rules shapes how projects launch in Europe. MiCA treats security‑type tokens as regulated securities, so projects must issue a prospectus or meet the simplified prospectus exemption.

Both FCA and MiCA influence the most common vehicle for compliant capital raising: the Security Token Offering (STO), a tokenized security that complies with securities law, offers investor rights, and provides clear secondary‑market trading rules. An STO typically requires a verified issuer, audited financials, and a lock‑up period for token holders.

In contrast, an Initial Coin Offering (ICO), a fundraising method that issues utility tokens without necessarily meeting securities standards can still fall under FCA or MiCA if the token grants profit‑sharing or voting rights. The line between utility and security is thin, so many projects opt for the STO route to avoid regulatory ambiguity.

Beyond the regulator and token type, regulated crypto fundraising also hinges on three practical steps: 1) completing a thorough AML/KYC check, 2) securing a legal opinion on token classification, and 3) publishing a detailed whitepaper that meets disclosure standards. Skipping any of these steps can trigger enforcement actions, fines, or forced token rescission.

Another piece of the puzzle is stablecoin compliance. Under MiCA, stablecoins classified as “e‑money tokens” must hold reserves equal to their circulating supply and obtain a specific licence. Projects that plan to use stablecoins for fundraising need to verify that the stablecoin issuer meets these reserve and reporting obligations.

Finally, cross‑border fundraising adds another layer. If a UK‑based startup wants to tap investors in the EU, it must align with both FCA and MiCA rules, often requiring a dual‑registration strategy. This dual compliance ensures that investors on either side receive the same level of protection.

All these elements—regulators, token structures, AML/KYC, stablecoin rules, and cross‑border coordination—form a tightly linked network. Understanding how they interact helps you design a fundraising campaign that moves fast, stays legal, and attracts serious capital.

Below you’ll find a curated collection of articles that dive deeper into each of these topics, from detailed guides on FCA authorization to side‑by‑side comparisons of STO and ICO frameworks. Explore the posts to see how you can apply these principles to your own token sale and stay ahead of the regulatory curve.